Sono Group N.V. underwent strategic financial restructuring with key adjustments in debenture issuance, debt conversion, and fair value changes in convertible notes payable.
The company converted all existing debt to preferred equity and made significant changes to its balance sheet and income statement.
The pro forma adjustments and recapitalization led to notable changes in the company's financial position.
New Issuance of $7.2 Million Debenture Adjustment
Issued $5.0 million secured convertible debenture with further potential issuance of $2.2 million pending Nasdaq approval.
Conversion of Debt to Preferred Equity
Converted €39.66 million of debt into preferred equity, totaling 1,315 preferred shares convertible into ordinary shares.
Fair Value Changes in Convertible Notes Payable
Reversed income from fair value changes of €20.97 million convertible notes due to conversion to preferred equity.
Change in Subscribed Capital
Reverse split of 75 to 1 resulted in a change in nominal value of ordinary and high voting shares.
Net Equity Conversion to US Dollars
Converted net equity of 4.115 million Euros to $4.815 million at an exchange rate of 1.17.
- The strategic restructuring actions improved the company's financial flexibility and reduced debt obligations.
- Conversion to preferred equity enhanced the balance sheet by simplifying the capital structure and reducing interest expenses.
- Net equity conversion to US dollars at a favorable exchange rate increased the company's financial strength and met the minimum required net equity threshold.
Sono Group N.V.'s strategic financial restructuring has positioned the company for future growth and enhanced financial stability in line with its long-term objectives.